Rumours spark bank run on Swedish lender

SWEDISH lender Swedbank said yesterday that queues of people withdrawing money at its cash machines in Latvia were due to a false rumour spread by social media that Swedish banks had problems.

“These are totally irrelevant rumors coming out of social media. The bank’s position is more than solid,” Swedbank spokesman Thomas Backteman said. “The rumors are not only about us, but about Swedish banks.”

Queues formed in Latvian capital Riga at some machines to withdraw money. Latvian media said queues were longer in other regions. The rumors began on the social networking service Twitter, prompting some panicky withdrawals of funds.

Latvia’s financial services authority said the rumors were unfounded.